Qualcomm‘s stock rose as much as 15% in after-hours trading Wednesday after it announced a deal to supply Facebook-parent Meta with AI chips.
The San Diego-based wireless pioneer said its new Dragonfly C1000 chip will power Meta’s next generation of data centers.
“We’re excited to continue partnering with Qualcomm Technologies as they design the next generation of CPUs for Meta,” said Mark Zuckerberg, founder and CEO of Meta in a statement. “Along with our other compute investments, we’re quickly building the infrastructure we need to deliver personal superintelligence to everyone in the world.”
Qualcomm President and CEO Cristiano Amon said the new chip is part of the San Diego-based wireless pioneer’s continuing diversification beyond cellular handsets. He said annual revenue from the new AI chips and other new businesses will reach $40 billion in 2029 –approximately twice the current level.
“We are defining Qualcomm’s next chapter as we accelerate our edge diversification strategy, introduce a comprehensive roadmap for next-generation AI data centers, and evolve into a platform company,” said Amon during the company’s annual Investor Day in New York.
Other new businesses for which Qualcomm is creating computing technology include vehicles, robots and Internet-connected devices.
Qualcomm stock closed at $197.41 per share on NASDAQ prior to the afternoon announcement, then rose as high as $230 in after-hours trading.
